UPSC Prelims 2020 CSAT Paper II · Q27 of 80 Comprehension medium

Passage

Passage—5 In India, agriculture still engages about half of its workforce, and about 85 per cent of its farms are small and marginal. Compared to China and Vietnam, which have experienced fast structural and rural transformation, India's story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988–2014, compared to China and Vietnam. India's poverty reduction was slow during 1988–2005, but during 2005–2012, it accelerated dramatically—almost three times faster than during the earlier period. What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50%) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50%. As a result, agri-GDP growth touched 4·1% during 2007–2012 as against 2·4% during 2002–2007. The net surplus of agri-trade touched $25 billion in 2013–2014; real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.

Which one of the following statements best reflects the critical message of the passage?

  1. (a) India should create large-scale off-farm rural employment to reduce poverty in the near future.
  2. (b) India should create a large number of farmer producer companies.
  3. (c) Private investment in agriculture should be given priority over public investment.
  4. (d) Inclusive agricultural growth is key to reduce poverty in the near future. ✓ UPSC's answer

Why the answer is (d)

• The passage highlights that India's poverty reduction accelerated dramatically between 2005 and 2012, a period distinct from the slower pace seen in 1988–2005.

• This acceleration was driven by a significant shift in relative prices favoring agriculture, which boosted private investment in the sector by more than 50%.

• Consequently, agri-GDP growth rose to 4.1% (2007–2012) compared to 2.4% (2002–2007), and real farm wages increased by 7% per annum.

• The text explicitly links these agricultural economic improvements to an 'unprecedented fall in poverty,' indicating that growth within the agricultural sector itself was the primary driver.

• Therefore, the critical message is that inclusive growth in agriculture, rather than off-farm employment or specific corporate structures, is the key to reducing poverty in the near future.

Why the other options are wrong

(a) India should create large-scale off-farm rural employment to reduce poverty in the near…
The passage attributes the recent acceleration in poverty reduction to agricultural growth and farm wage increases, not to the creation of off-farm rural employment.
(b) India should create a large number of farmer producer companies.
The text does not mention farmer producer companies or suggest their creation as a strategy for poverty reduction.
(c) Private investment in agriculture should be given priority over public investment.
While the passage notes a boost in private investment, it does not argue that private investment should be prioritized over public investment.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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